Success on 4th Vacation Rental!

[Maura Paler]

We just closed on our 4th Vacation Rental property!

Thought it would never happen after the lengthy, frustrating, infuriating bank loan process. This is our 3rd investment mortgage, will never go through this again, even with the good rate. Got a 15 yrs 3.56 rate, but next time will pay higher rate to go with our smaller local bank who owns their own loans. Lost about a year off my life with the stress, just not worth it. 

But the house is great! This is our first that requires little work - just a little renovation, some fun Craigs List furnishings, and ready to rent we are. 

What I love about vacation rentals is that, apposed to the typical suggestion not to fall in love with your rental, it's OK for me to fall in love with the property. It has to be fab for someone to want to rent for a week...so fab I make it. It's fun. 

$260K purchase price, 10K closing costs, $5K furnishings and stuff. 

$25,000 per year with mortgage, insurance, taxes, utilities and operating costs 

Expect $50K first year.  Own it clear in 15 yrs. 

[Maura Paler]

Bought our 5th Vacation Rental! They are all in the southern Adirondack Mountains (upstate NY)

Paid $174K, invested $25K in renovations/furnishings/landscaping 

Expecting $35-45K per year income

Anticipate $5-10K in expenses annually 

As per my last post regarding the frustration of financing, we purchased this on margin from our stock account, which is considered a cash purchase. Hope to get a home equity loan (refinance loan? not sure what it's called) for about $125-150K. Our stock margin is only 4%, so we are OK if we do not end up with a traditional bank loan, but would be nice to get our cash back to reinvest (also if market goes south we are in trouble with a margin loan!). 

This one is an original 1940's log cabin with lots of privacy (3 acres!), which in our experience is key to success in VR in our area. Lake view and lake access up here are important as well. This is lakefront, but reason it was so cheap is that the lake was not accessible as it is marshland before the lake. 

So, with some sweat equity and determination, we have created a 120 ft path through the marsh, and now have lake access! Kayaks will soon be included - so our rates are going to increase and we believe so will our occupancy. We closed in early July, did some renovation to the cabin, cut down a bunch of dead trees to improve the view, and voila, got fully rented through summer. Fall rentals will improve (we hope!) now that we can offer lake access and kayaks. 

Here is a rental link to the new cabin: 

http://www.adkbyowner.com/listings/VR7716.html

Here are our other 4 rental properties: 

http://www.homeaway.com/vacation-rental/p3165887

http://www.homeaway.com/vacation-rental/p353641

http://www.homeaway.com/vacation-rental/p3946888

http://www.homeaway.com/vacation-rental/p189448